Market Overview

5 Big Changes Coming To Macy's

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5 Big Changes Coming To Macy's

Troubled department store Macy's Inc (NYSE: M) has a game plan to regain some of the lost traffic and sales from other department stores, off-price retailers and online foes.

Macy's president and incoming CEO Jeff Gennette offered a glimpse of what consumers can expect in the future.

Speaking at the Bank of America Merrill Lynch Consumer & Retail Technology Conference on Tuesday, he explained the following five changes that could be implemented in stores.

1. Clearance Racks

Macy's plans on shifting all marked down products to a specific area of the store that will be called "Last Act." By moving all merchandise to one area, consumers looking for a bargain will know where to look while the rest of the store will be dedicated towards selling items at full-price.

This concept has already been tested in 10 stores and should be rolled out to another 30 stores throughout the year.

2. Couponing

Consumers naturally love a good deal, but have become frustrated with coupons that have restrictions on them. Instead, Macy's will offer a straight up coupon such as $10 off a $50 purchase that isn't limited to specific brands.

3. Sales Associates

Macy's plans on remodeling its shoe section so consumers can serve themselves and find their size from a selection of boxes that are already on the sales floor.

4. Focus On Beauty

Macy's is also exploring similar self-service options in the beauty department and will also place an emphasis on its own private label brand.

In addition, the company hopes its higher-end Bluemercury brand can boost traffic among the millennial crowd which has fueled demand for beauty products, especially cosmetics.

5. Shop-In-Shops

Finally, Macy's has agreements with LensCrafters, Sunglass Hut and even Finish Line Inc (NASDAQ: FINL) to create "shop-in-shops" concepts.

Genette said these concepts could eventually become a bigger part of Macy's businesses, especially as its partners provide their own goods and services inside of its stores.

See Also:

Macy's Biggest Foe Isn't Amazon... It's Other Brick & Mortar Retailers

Analyst: Macy's Loss Is Burlington's Gains

Posted-In: Beauty Beauty Products CNBC coupons Department Stores eff Gennette MacysMedia Best of Benzinga

 

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